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Gresham House plc

Gresham House plc Trading in line with expectations

Gresham House plc (LON:GHE) the specialist alternative asset manager, has today reported a strong first half of the year with significant improvements in income and adjusted operating profit as the Group focused on consolidating and progressing its organic growth priorities whilst continuing to develop new investment products and clients.

Highlights


As at 30 Jun 19As at 31 Dec 18Change

(£m)(£m)(%)
Assets under management2,4502,2688.1
Cash and liquid assets136.332.810.6





Six months to 30 Jun 19Six months to 30 Jun 18Change

(£m)(£m)(%)
Total income15.34.9+209
Total comprehensive income(0.7)(0.4)-83
Adjusted operating profit24.40.4+1,090

1Cash and liquid assets includes cash and investments in tangible and realisable assets

2Adjusted operating profit is defined as the net trading profit of the Group before deducting amortisation, depreciation and exceptional items relating to acquisition and restructuring costs.

  • AUM increased to £2.5 billion entirely driven by organic growth, enabling a significant increase in income to £15.3 million (H1 2018: £4.9 million) and adjusted operating profit to £4.4 million (H1 2018: £0.4 million)
  • Captured annualised acquisition synergies of over £1.0 million
  • Adjusted operating margin of 29% (H1 2018: 8%) – strong progress towards the Company’s stated target of 40%
  • Organic growth in AUM of £183 million includes fundraising of £50 million from Gresham House Energy Storage Fund plc (GRID), £25 million from Baronsmead VCTs and £94 million from Forestry
  • Sustained balance sheet strength with cash and liquid assets of £36.3 million – driven by cash generation from the operating business and allowing further investment in people and platform for enhanced long-term growth
  • Zero debt – fully repaid £10.0 million debt facility in July 2019 (repaid £7.0 million in period to 30 June 2019)
  • Paid maiden dividend under new management team of 3.0p in the period
  • Significant Irish forestry mandate awarded by AXA Investment Managers – Real Assets, taking the Group international and highlighting the sustainable investment capabilities of the Group
  • Since 30 June 2019 continued fundraising with an additional £15.0 million for GRID, and we anticipate a further fundraising close for BSIF during the second half of the year

Commenting on the results, Tony Dalwood, Chief Executive, said:

“Our focus on alternative asset management remains increasingly of interest as allocations to these areas continue to build. Alongside revenues, the Gresham House brand is growing, and we are increasingly well-placed for the important shift towards ESG and sustainable investment.

“Trading in the first half of 2019 has been in line with our expectations and we feel well positioned for the remaining part of the year.

“We have made significant progress developing our platform, including enhanced capability within sales and distribution, in order to scale in the future whilst looking at international opportunities in a post-Brexit world.”

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.